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Property tax mounts over Rs 11,000 crore, city developers top defaulters

As per the record of Assessor & Collector Administrative department of BMC, till March first week, the total amount default of property tax was standing around Rs11,265 crore and majority of defaulters are top developers of city who have mega projects across the city.

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As amount of property tax default has mounted over Rs 11,000 crore, the Brihanmumbai Municipal Corporation (BMC) has decided to crack the whip on defaulters. Soon, the property tax department will start process of attachment of properties of defaulters apart from legal action.

As per the record of Assessor & Collector Administrative department of BMC, till March first week, the total amount default of property tax was standing around Rs11,265 crore and majority of defaulters are top developers of city who have mega projects across the city.

According to official, around 60% cases of property tax defaulters are under litigation and thus the collection has been affected. However, the civic body will go ahead and take strict action against defaulters whose cases are not pending in court. As per the record with the Assessor & Collector Administrative department of BMC, over 1000 projects executed by developers are in the list of defaulters.

Some of the city developers have defaulted over Rs 50 crore from their several projects spread across all wards. Maximum defaulters have been identified in A ward where around Rs 1,495 crore property tax is pending.

The BMC has also prepared a list — a copy of which is with DNA — of property tax defaulters who owe the civic body over Rs 1 crore. According to official, the civic body will now put stress on collection of property tax. “We will take several measures to improve tax collection and some of them are disconnecting water supply, taking legal recourse and attaching their properties,” said the official. The civic body has reportedly disconnected water connection to around 100 properties as part of the action.

Default of property tax is not limited to new projects. In Andheri (east) which is K (East) ward where there are old buildings. over Rs 1,015 crore property tax is pending. Similarly, in Lower Parel and Elphinstone where there are old mills, which fall in G-south ward, there is Rs 1,277 crore pending.

Bapu Pawar, deputy municipal commissioner, BMC, said that the civic body has already started taking action and will soon intensify it against defaulters. 

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